Tuesday, March 4, 2025

The Zacks Research Daily presents the best research output of our analyst team. Today's Research Daily features new research reports on 16 major stocks, including Novo Nordisk A/S (NVO), The Coca-Cola Co. (KO) and Wells Fargo & Co. (WFC), as well as a micro-cap stock Star Group, L.P. (SGU).  The Zacks microcap research is unique as our research content on these small and under-the-radar companies is the only research of its type in the country.

These research reports have been hand-picked from the roughly 70 reports published by our analyst team today.

You can see all of today’s research reports here >>>

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Today's Featured Research Reports

Shares of Novo Nordisk have underperformed the Zacks Large Cap Pharmaceuticals industry over the past year (-37% vs. +3%). The company’s failure to meet the weight-loss target with CagriSema caused a huge setback. Intense rivalry in the obesity sector also threatens its market share. Patent expiry and pricing pressure across the diabetes market remain a woe.

Nevertheless, Novo Nordisk beat fourth-quarter earnings and sales estimates. Its diabetes drugs Ozempic and Rybelsus and obesity drug Wegovy are performing well, fueled by increasing demand. Label expansions of the same in cardiovascular and other indications will likely boost sales. 

It has been tackling the supply constraints of Wegovy by making serious investments to ramp up production. It is now indicated in the United States and the EU to also reduce heart risks, which is a huge boost. Novo Nordisk is also pursuing other indications like liver fibrosis and MASH for semaglutide.

(You can read the full research report on Novo Nordisk here >>>)

Coca-Cola’s shares have outperformed the Zacks Beverages - Soft drinks industry over the past year (+19.2% vs. +6.6%). The company experiences positive business trends, as evidenced by its strong track record of beating expectations. In fourth-quarter 2024, the company exceeded sales and earnings estimates for the eighth consecutive quarter, with earnings showing year-over-year improvement. 

Results benefited from continued business momentum, aided by higher pricing across markets facing intense inflation and favorable mix. Coca-Cola's all-weather strategy, combining marketing, innovation, and revenue growth management, supports its vision of a total beverage company and is expected to drive revenue growth in 2025. 

It has provided an optimistic view for 2025. However, Coca-Cola faces inflationary cost pressures due to higher commodity and material costs, as well as increased marketing investments.

(You can read the full research report on Coca-Cola here >>>)

Shares of Wells Fargo have outperformed the Zacks Financial - Investment Bank industry over the past six months (+42.2% vs. +25%). The company’s efforts to strengthen risk management and compliance infrastructure continue to be the mainstay of its operational strategy, as seen by the resolution of ten regulatory consent orders since 2019. 

Wells Fargo’s progress on efficiency initiatives, such as branch and footprint reduction, will support expense reduction and drive bottom-line growth. A decent deposit balance is likely to support its financials. 

Yet, its loan growth is expected to be limited, as the asset cap remains in place until it complies fully with regulators’ demands regarding operational risk management. This, along with lower origination, is expected to hurt mortgage banking income in the near term. Yet, its decent liquidity position will keep the capital distribution move sustainable in the long term.

(You can read the full research report on Wells Fargo here >>>)

Star Group’s shares have outperformed the Zacks Electronics - Miscellaneous Products industry over the past year (+26.6% vs. -44.2%). This microcap company with market capitalization of $451.79 million have seen first-quarter net income surged $19.9 million year over year to $32.9 million, driven by a $24.3 million favorable derivative movement, offsetting revenue declines and higher taxes. 

Adjusted EBITDA rose $2.8 million to $51.9 million, supported by acquisitions and margin expansion. Home heating oil and propane volumes grew 2.8% to 82.4 million gallons due to colder weather and acquisitions. Service and installation revenues rose 11.4% year over year to $88.6 million, enhancing stability. 

However, revenues fell 7.6% to $488.1 million as lower selling prices offset volume gains. The base business volume declined 4.7%, signaling organic weakness. Customer attrition hit 4.3%, with lower gross gains. Operating expenses rose 5.3% due to acquisitions, pressuring margins. Regulatory risks, pricing pressure and competition are challenging, while management remains cautious about distributions.

(You can read the full research report on Star Group here >>>)

Other noteworthy reports we are featuring today include Moody's Corp. (MCO), Diamondback Energy, Inc. (FANG) and Waste Management, Inc. (WM).

Mark Vickery
Senior Editor

Note: Sheraz Mian heads the Zacks Equity Research department and is a well-regarded expert of aggregate earnings. He is frequently quoted in the print and electronic media and publishes the weekly Earnings Trends and Earnings Preview reports. If you want an email notification each time Sheraz publishes a new article, please click here>>>